A study by Zillow found that about 2 million renters could afford monthly payments on a typical starter home in the U.S., but not in their current metro.

Nearly 2 million current renters could become homeowners with the opportunity to move to another metro afforded to them by working remotely, according to a new study released Tuesday by Zillow.

The study by the Seattle-based company’s economic research team found that roughly 2 million renters could afford monthly payments on the typical starter home in the U.S., but not in their current metro.

“If remote work becomes a bona fide long-term option especially with the pandemic, that could reshape the U.S. housing market by opening up homeownership to people renting in expensive parts of the country,” Zillow economist Jeff Tucker said in a statement. “However, it’s unclear how many people would make the move to buy their first home.”

Jeff Tucker | Photo credit: Zillow

“Proximity to work is just one of the factors people consider when choosing where to live,” Tucker added. “Other factors may keep them from moving, including proximity to friends and family, cultural and natural amenities and their kids’ schools.”

The more expensive the metro, the greater number of potential new homeowners, the study found. In San Francisco, for example, 22 percent of renters priced out of buying a home in their metro could afford monthly payments on a typical U.S. starter home.

Most renters don’t have to stray too far to find affordability either, the study found. More than 10 percent of renters who couldn’t afford to buy in San Francisco, could afford a starter home within the area.

Certain cities like Pittsburgh, Pennsylvania; El Paso, Texas; and Rochester, New York, have more affordable starter homes than the country as a whole, so prospective buyers will find better deals in their own metro, rather than looking elsewhere.

The COVID-19-fueled remote work trend is likely to continue into the near future, according to Zillow, which has told its own employees they can work remotely indefinitely. A previous poll from the company found that, of those that would continue working from home, 66 percent of renters said they would consider moving.

Of the nearly 2 million renter households that could unlock homeownership opportunities through remote work, nearly half of them are millennials.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×